Irish lawmakers to vote on banks guarantee plan

DUBLIN, Oct 1 (Reuters) - Irish lawmakers were expected to sit late in parliament on Wednesday to approve emergency legislation guaranteeing Irish bank deposits and debts in a move aimed at shoring up the domestic financial system.

A debate on the bill, which gives the Irish state wide-ranging powers to protect Irish-owned financial institutions, was adjourned late on Tuesday night after a number of delays and began again on Wednesday morning.

An Irish finance ministry spokesman said the legislation was expected to be green-lighted by parliament late on Wednesday after which it would pass to the Irish Senate for final approval before being rubber-stamped by President Mary McAleese. "The bill is expected to go to the Senate this evening but that remains to be confirmed," the spokesman said, adding it was possible the bill might not get to the Senate until Thursday.

While there is general support for the bill, opposition parties have raised a number of concerns.

The Labour Party -- the third biggest grouping in parliament -- has called for more detail on the fees to be paid by banks in return for financial back-up, and for a cap on bank executives' pay.

The legislation, which will let the government guarantee the liabilities of six Irish-owned banks -- totalling some 400 billion euros ($565 billion) -- has raised questions in Brussels and London about competition and state-aid rules.

One senior stockbroker told Reuters on Tuesday that British companies had already begun transferring significant deposits to Ireland given the proposed new safeguards.

The Irish government unveiled its plan on Tuesday following dramatic falls in Irish banking stocks the previous day that had sparked fears of a meltdown. (Reporting by Kevin Smith; Editing by Hans Peters)